Opening balance
Also called: Opening entry
The balances a company starts with when it moves its books into BRAccount, posted through the Temporary Opening account.
In detail
Opening balances are the figures your business already had on the day it started using BRAccount: bank and cash balances, stock, unpaid customer invoices, unpaid supplier bills, fixed assets and share capital. They are posted once, dated the day before go-live or on Shrawan 1, with Temporary Opening as the other side of each entry so that the chart balances while you load them piece by piece. Unpaid invoices go in through the Opening Invoice Creation Tool so that each still has a party and an outstanding amount; stock goes in through a Stock Entry or Stock Reconciliation; everything else through one Journal Entry with Is Opening set to Yes. When all are in, Temporary Opening must be zero.
Formula
Sum of opening debits = Sum of opening credits; Temporary Opening ends at zero once every balance is loaded.
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Stock In Hand | Rs 4,50,000 | |
| Bank Account (rename me) | Rs 20,50,000 | |
| Temporary Opening | Rs 4,50,000 | |
| Share Capital | Rs 20,50,000 |
How to record it in BRAccount
- 01Go to Invoicing > Opening Invoice Creation Tool; add each unpaid sales and purchase invoice and click Create.
- 02Go to Stock > Stock Entry > New, type Material Receipt, add items at cost; Temporary Opening is the difference account.
- 03Go to Invoicing > Journal Entry > New, set Is Opening to Yes and date it Shrawan 1.
- 04Enter every remaining balance from your old trial balance, debits as debits and credits as credits.
- 05Submit. Then open Financial Reports > Trial Balance and confirm Temporary Opening shows zero.
When to use it
Use Opening Invoice Creation Tool for unpaid invoices and a Journal Entry with Is Opening set for the rest.
Example from the demo books
Opening stock Rs 4,50,000 was brought in with Dr Stock In Hand, Cr Temporary Opening.